Sanmina Corporation (SANM)

Return on assets (ROA)

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Net income	US$ in thousands	309,970	240,384	249,546	139,713	141,515
Total assets	US$ in thousands	4,873,970	4,835,530	4,206,720	3,772,660	3,905,510
ROA		6.36%	4.97%	5.93%	3.70%	3.62%

September 30, 2023 calculation

ROA = Net income ÷ Total assets
= $309,970K ÷ $4,873,970K
= 6.36%

Sanmina Corp's return on assets (ROA) measures the company's efficiency in utilizing its assets to generate profits. ROA is calculated by dividing net income by total assets. A higher ROA indicates that the company is using its assets more efficiently to generate profits.

Looking at the trend in Sanmina Corp's ROA over the past five years, we observe fluctuations in the ratio. In the fiscal year ending in September 2023, Sanmina Corp's ROA stood at 6.36%, up from 5.27% in the previous year. This increase suggests that the company was able to generate a higher level of profit from its assets compared to the prior period.

In fact, the ROA of 6.36% in 2023 is the highest among the five years presented, which indicates an improvement in the company's ability to generate profit relative to its total assets. This could be attributed to various factors such as effective cost management, increased revenue, or better utilization of assets.

Comparing the ROA of 6.36% in 2023 to the 3.62% in 2019, we can see a noticeable improvement in Sanmina Corp's asset efficiency over this period. This growth indicates that the company has become more proficient in generating profits from its assets, which is a positive sign for investors and stakeholders.

In conclusion, the upward trend in Sanmina Corp's ROA reflects the company's enhanced efficiency in generating profits from its assets. This suggests that Sanmina Corp has been successful in utilizing its assets effectively to drive increased profitability, which may positively influence investor confidence and financial performance.